BY Issah Olegor
The recent economic growth has yet to translate into meaningful improvements in living standards for a large proportion of the population, with the World Bank warning that 56.4 per cent of Ghanaians remain in poverty.
The warning was delivered by the World Bank Division Director for Ghana, Liberia and Sierra Leone, Dr Robert Taliercio O’Brien, during the launch of the 10th Ghana Economic Update.
His assessment points to a widening gap between the headline performance of the economy and the everyday economic realities confronting millions of Ghanaians.
According to Dr Taliercio O’Brien, although Ghana has recorded recent economic growth, the benefits have not been sufficiently broad-based to significantly improve living conditions across the country.
He specifically drew attention to growing regional disparities, suggesting that where people live increasingly influences their economic opportunities and access to improved livelihoods. “56.4% of Ghanaians remain in poverty, and spatial disparities are widening,” Dr Taliercio O’Brien said, highlighting what the World Bank considers a major concern in the economic recovery.
The latest assessment places the issue of poverty and inequality at the centre of the country’s economic policy debate.
While macroeconomic indicators may show signs of improvement, the World Bank’s position is that economic recovery cannot be considered fully successful unless it produces tangible benefits for households and creates opportunities for a much wider section of the population.
Growth Not Creating Enough Jobs
A major concern identified by the World Bank is the structure of the economic growth.
Dr Taliercio O’Brien explained that growth is currently being driven largely by sectors that have limited capacity to absorb the increasing number of people entering the labour market.
This, he said, could become an even greater challenge as the youthful population continues to expand.
“Growth is led by sectors with limited employment absorption relative to its growing young population entering the labour market in the next decade,” he stated.
